| |
Credit Provider - Commercial Low Doc 60%
Major Bank with Australia wide Branch network.
|
DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?
Our Fact Sheets provide in-depth information that is generally not available from any other source (INCLUDING the Lender).
They have been designed so that prospective borrowers have access to ALL of the information they need to make an informed
decision regarding the suitability of the loan to meet their requirements.
To properly evaluate a loan, we believe that full disclosure of the following information is critical to the decision making process:
- What are the loan features?
- How much will it cost to set up the loan?
- What are the interest rate options and ongoing fees?
- How much will it cost to discharge the loan?
- What documents will I need to supply to apply for this loan?
DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?
|
|
Product Highlights
FREE SERVICE - Rates, Costs and Fees are EXACTLY the same as if you had dealt with the bank direct.
"Set and Forget" - no ongoing Reviews.
Maximum Loan Term 15 years (5 years Interest Only - can be rolled).
NO INCOME proof required (Payslips, Tax Returns etc).
Owner Occupied Commercial property as Security is acceptable.
Cash Out available when Refinancing - high level explanation of intended funds usage required.
Funds for Working Capital is an unacceptable Loan Purpose.
Individuals, Pty Ltd Companies and Discretionary Trusts acceptable (NO Unit Trusts).
Acceptable Security includes:
- Office Buildings or Strata'd Office Units
- Shops
- Warehouses
- Factories
- Block of Units (if more than 4 in Block, case by case)
Unacceptable Security includes:
- Vacant Land
- Rural Zoned properties
- Development / Construction Projects
- Hotels, Motels, Child Care Centres
- Specialised Security (call to check)
Self employed in CURRENT business for at least 2 years.
ABN required for 2 years (needs to be GST registered for at least 1 year if income > $75,000).
Co-borrowers can be PAYG but there must be at least one self employed borrower.
Postcode restriction may apply (but generous).
Maximum loan amount of $1,000,000 to 60%
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
.
Maximum exposure per Customer of $1,000,000.
COMBINED Mortgage exposure (ALL BANKS, including this Loan) cannot exceed $1.5m.
NO MORTGAGE INSURANCE (
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
.
|
)
Extremely flexible loan structuring options (ie mix of fixed, variable or line of credit).
100% Offset available.
Nationwide Branch network.
Competitive rates and fees (EXACTLY the same as Commercial Full Doc Loans).
Loan is portable.
Minimal documentation requirements.
Things you need to know
Initial loan must be at least $100,000.
Maximum "cash out" is $50,000 or 10% of loan amount (whichever is lesser) without detailed explanation (invoices, contracts etc)
of what funds are for.
Will only refinance FULL DOC Loans from the following Lenders:
ANZ, CBA, Bankwest (Bank WA), NAB, Homeside, Westpac, St George (Bank SA), BOQ, Bendigo, Citibank,
HSBC, ING, Credit Union Australia, Police & Nurses Credit, Heritage, The Rock, Newcastle Permanent.
Bank can be sensitive with respect to the loan term if Borrowers are aged over 50 (need Exit strategy).
Not suitable for applicants with
Bad Credit
Bad Credit refers to entries that have been recorded on your Credit Report
because you have not paid a bill following repeated requests from the Credit Provider
(commonly called a Default), or where a credit related matter has been formally placed before the Courts (Judgements and Court Writs).
Defaults often relate to unpaid Telco bills (telephones, mobile phones etc) as well as Utility bills (Electricity, Gas etc). Once an
entry has been recorded on your Credit Report, it can stay there for up to 7 years (regardless of whether you pay the outstanding amount
or not). Generally speaking, it is difficult to obtain Credit at favourable Terms if you have entries of this nature on your
Credit Report (particularly if the account has not been paid).
Note that being late with a bill payment or having an overdue account does not constitute Bad Credit. It is only a problem if it has
been formally recorded on your Credit Report (eg: placed with a debt collection agency).
As part of the Loans process, we usually check your Credit Report before we complete
formal paperwork. We will then discuss the results with you and advise you of your options if there are any matters of concern.
What is a
Credit Report
When you make a Credit Application with a Credit Provider (eg: a Bank, a Telephone company or for a Credit Card), the details of
your enquiry are logged in a Central Database (accessible, by Subscription only, over the Internet). If you do not pay an
outstanding account, then the Credit Provider can record this in the same Database (commonly called a Default). Most Credit
Providers will check your Credit Report before granting Credit. If there are adverse entries (Defaults, Judgements, Writs etc),
then your application for Credit MAY be declined (without reason).
Note that you have to give express permission to the Credit Provider before they can access your information.
This is usually done by signing a Privacy Authority included with the Credit Application Form. You are not required to grant permission
to the Lender to do this, but your Credit Application is unlikely to be approved without it.
The company that provides this service in Australia is Veda Advantage.
They are required (by law) to provide you with a copy of your Credit Report on request.
|
??
|
.
Minor PAID Defaults (generally under $500) considered with written explanation.
Fees and Charges
$800 Lender setup costs for loans to $500,000. Also covers Legals.
0.30% Lender setup costs for loans $500,001 to $1,000,000. Also covers Legals.
Valuation at cost (subject to Quote).
Monthly fee of $15 per Loan Split - Line of Credit $80 per Quarter.
0.15% Fixed Rate Lock Fee to guarantee published Fixed Rate AT time of APPLICATION:
- Charged to the Loan at Settlement.
- Payable per fixed loan split.
- Valid for 90 days only (from date of Application).
Other fees and charges may apply at the discretion of the Bank. For example:
- Where there is more than one Security property.
- Where Guarantors are involved.
- Where Companies/Trusts are involved.
Early Repayment Fees:
- $1,200 per loan split if loan is discharged in first 4 years.
- PLUS $150 Discharge Registration Lodgement Fee, regardless of time of discharge.
- Break Costs may apply if a Fixed Loan is repaid during the Fixed Term.
Government stamp duties and other government charges may apply.
Paperwork you will need to provide to apply for this Loan
ALWAYS REQUIRED
100 point ID for each applicant (usually a Passport or Birth Certificate PLUS a Drivers Licence).
The latest Rates Notices on any properties that you own.
Last 6 months Home Loan statements for any Home Loans that you have.
Last 6 months TRADING BANK ACCOUNT statements for Business Account. These statements are NOT used to confirm income but are
used to confirm that the business is Active and that all business liabilities have been declared (eg: Lease payments and other regular
expenses).
Confirmation from accountant, or provision of suitable certification that various taxation and statutory payment obligations have been paid.
IF YOU ARE PURCHASING
Signed and dated Copy of the Contract of Sale.
Evidence that you have sufficient funds to cover the Deposit and Purchasing Costs (eg: Bank Statement).
IF YOU ARE REFINANCING
Latest Rates Notice(s) on the Property(s) being offered as Security.
Last SIX months Home Loan Statements on all Home Loans and Commercial Loans that you currently have (regardless of whether the
Security property is being refinanced). Latest statement CANNOT be older than 1 month.
Some GENUINE bank statements are required (ie: cannot provide all statements as Internet printouts, does not matter how old genuine
statements are).
Loan Stucturing Information and Interest Rates
You can have as many 'splits' (or loans) as you like against as many Security properties as you like.
A mixture between Fixed, Variable and Line of Credit is allowed on a
Principal & Interest or Interest Only basis (see below for details).
|
|
Variable Rate Loan
|
Line of Credit
|
Fixed Rates
|
|
Effective Dates
|
7th December 2009
|
7th December 2009
|
7th December 2009
|
Total loan amount:
$100,000 to $1,000,000
|
8.64%
|
Currently not available
|
7.20% - 1 Yr
8.00% - 2 Yrs
8.05% - 3 Yrs
8.80% - 4 Yrs
9.10% - 5 yrs
At end of Fixed Rate period, reverts to standard variable
|
|
Payment Frequency
|
Weekly, Fortnightly or Monthly (Interest Only is ALWAYS Monthly)
|
N/A
|
Weekly, Fortnightly or Monthly (Interest Only is ALWAYS Monthly)
|
|
Interest Only Option
|
Up to 5yrs
|
N/A
|
In line with Fixed Rate Term
|
|
Offset Account
|
100% Offset available
|
N/A
|
No
|
|
Funds Access
|
See Redraw below
|
N/A
|
Not available during fixed rate period
|
|
Redraw
|
Yes - $1,000 minimum Internet, Telephone, ATM and EFTPOS
|
N/A
|
Not available during fixed rate period
|
|
Extra Payments
|
Unlimited - however regular repayment always based on fully approved loan amount (unless facility is Interest Only)
|
N/A
|
Maximum of $500 per month (NON cumulative)
|
|
|
